Cultural variations in country of origin effects

The authors examine the extent to which cultural orientation influences country of origin effects on product evaluations in two countries (Japan and the United States). Subjects were given attribute information about a mountain bike made in either japan or the United States. The target product was described as either superior or inferior to competition. Respondents in Japan evaluated the product that originated in the home country (versus foreign country) more favorably regardless of product superiority. In contrast, respondents in the United States evaluated the product that originated in the home country more favorably only when the product was superior to competition. The authors explain these findings on the basis of the cultural psychological principles of individualism and collectivism. Specifically, the authors show that the vertical dimension of individualism and collectivism explains country of origin effects. The authors also discuss implications for global marketing strategies featuring country of origin.